The Head of Service, Anambra State, Barr Mrs Theodora Igwegbe has declared that the state government would not rest until it uncovers the whereabouts of pension funds of Local Government staff and Primary School teachers in the state.
Igwegbe gave the assistance in Awka during a one-day awareness workshop on Contributory Pension Scheme in Anambra State.
She explained that the state government did not suspend Contributory Pension Scheme but only suspended deductions of such funds to allow the probe committee look into what is going on in respect of workers’ welfare.
According to her, between July 2014 and 2018, deducted funds from Local Government staff and Primary School teachers were not remitted to the Pension Fund Administrators (PFAs) and that posed a challenge to the integrity of the system.
“This was one of the matters I was confronted with when I assumed office. Thus, it was one of the terms of reference given to the committee by Mr Governor to discover who is holding the fund. Am assuring you that by the time the Committee finishes this assignment, I will stand boldly to tell you that the money deducted from workers’ salary in Local Government Areas and Primary School teachers, is with so so so person. Then we will find a way to get it back from them to PFAs.
“Also from 2018 to 2022, the Government was not paying it’s counterpart fund. Luckily, it was one of the first issues my office presented to the Governor and he didn’t hasitate to direct the office of the Accountant General to start paying to the PFAs the 10% that should be coming from the Government.
“The state government is not indebted to any of the PFAs regarding the 10% contributions. Where we have issue is on the Local Government and Primary School, hence we were asked to find out what happened and where the money is.”
She further stressed the need for Anambra State House of Assembly to amend the Pension Reforms Law in tandem with what obtains at the federal level.
“Anambra State promulgated it’s own Pension Law in 2013 and now there are defects. So when the current bill comes to the House of Assembly, it should be pursued to ensure that whatever that will happen there at State Assembly will be in line with federal law for seamless implementation.
“In no distant time the pension reform law in the state will be reviewed. Already it is under going review at the federal level, we need to exercise patience to see what they have there and then key into it in order to implement whatever will come out in Anambra State House of Assembly.
A Pension Fund Administrator and Regional Manager Access Pensions Limited, Princewill Onwuka critically examined the origin and prospects of pension scheme in Nigeria.
“Pension started in 2004, before which many of us had started working and it is assumed that by June 25th 2024, those people must have retired.
“Those that were working between 2004 to 2007 were exempted from Contributory Pension Scheme for those at the federal civil service. But from 2008, if you retire, the PFAs will pay you and government will bring the accrued right being what supposed to be your pension and gratuity prior to 2004 and match it with what you contributed till when you retire.
“For Anambra, the state should have redemption point where they will also put a seed fund aside so that when workers retire, those accrued rights will be ceeded out from the redemption point to help pay the worker immediately. That was started but was not however sustained.
“Pension Law at federal enacted in 2004 and amended in 2014, amendment is currently going on at the Senate. The imput we make today will be forwarded to the State House of Assembly to amend the law and make it a workable instrument.
“Secondly, we really need a bureau, commission or board to take care of pensions in Anambra State so that it will be a one-stop shop for everything concerning pensions in the state.”
Responding, the NLC State Chairman, Comrade Humphrey Nwafor said the purpose of the workshop is to sensitize the leaders of various industrial unions on the merits and demerits of Contributory Pensions Scheme especially as it concerns the Anambra workers.
“To discuss the gains and losses so far made since the commencement of the CPS in the year 2014 in Anambra State, the outstanding funds yet to be remitted to the PFAs (Pension Fund Administrators) and the way forward.”
It is trite to note that a Pension Fund Administrator (PFA) is a company licensed by the National Pension Commission to manage and invest the pension funds in the employee’s Retirement Savings Account (RSA).
Similarly, Pension Fund Custodians (PFCs) are responsible for keeping safe custody of pension money and assets on trust on behalf of contributors, or for the employer on behalf of the PFA.
